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Department of Agriculture and Cooperation Annual Report 1997-1998 AGRICULTURAL IMPLEMENTS AND MACHINERY Farm Mechanisation has been one of the vital programmes of the Government of India with the aim of optimal utilisation of the available sources of farm power. With a view to meeting the food requirement of the ever-increasing population in the country, Government have laid stress, inter- alia on the promotion and popularisation of improved agricultural implements, both power- operated and animal drawn implements. Financial assistance has been extended to the farmers, various registered agricultural cooperative societies, etc. for owning tractors and their matching implements. A sizeable infrastructure has been developed for imparting training to the farmers and other personnel for the proper selection, operation, maintenance, and management of farm machinery. Energy conservation techniques in the use of agricultural machinery have been given emphasis in the training programmes being conducted at the Department’s Farm Machinery Training and Testing Institutes. For improving the level of mechanisation in the North-Eastern States, a new scheme has been included in the programmes for the Ninth Five Year Plan of the Department. Besides, with a view to bringing about an effective and balanced development of farm mechanisation in the various agro-climatic zones of the country, another new scheme has been proposed for its implementation during the Ninth Five Year Plan for conducting an in-depth study to identify the specialised agricultural equipment suitable for catering to the felt-needs of the different zones and formulating long-term mechanisation strategies of each agro-climatic zone. Progress of Selective Mechanisation 11.2 The ever-increasing use of improved agricultural machines and implements has contributed to a noteworthy increase in the production of the agricultural produce by way of tapping the optimal agricultural potential of the country. Keeping in view the indispensability of animal power in the prevailing agro-climatic and socio-economic condition of the country, the Government have also laid emphasis on the promotion and popularisation of improved hand tools, animal drawn implements and some of the power operated machines among the farmers. During the year under report, it was targeted to provide subsidy ranging from 25 percent to 50 percent to the farmers for the purchase of about 2,28,000 manually operated/bullock drawn implements and power operated machines, 94700 plant protection equipment, 17,400 sprinkler sets, and 3970 power tillers under the various crop- oriented schemes of the Department. As a result of the Government policy and programmes, fuel- efficient tractors and other improved and quality farm machines and equipment are now available to the farmers. The programmes have also resulted in the increased adoption of agricultural machines by the farmers. The farm power, now available in the country is estimated at 1.1 Hp/ha. against about 0.35 Hp/ha. in the early seventies. The production and sale of tractors and power tillers during the last five years are given in the following table.

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  • Department of Agriculture and Cooperation Annual Report 1997-1998

    AGRICULTURAL IMPLEMENTS AND MACHINERY

    Farm Mechanisation has been one of the vitalprogrammes of the Government of India with theaim of optimal utilisation of the available sourcesof farm power. With a view to meeting the foodrequirement of the ever-increasing population inthe country, Government have laid stress, inter-alia on the promotion and popularisation ofimproved agricultural implements, both power-operated and animal drawn implements. Financialassistance has been extended to the farmers,various registered agricultural cooperativesocieties, etc. for owning tractors and theirmatching implements. A sizeable infrastructurehas been developed for imparting training to thefarmers and other personnel for the properselection, operation, maintenance, andmanagement of farm machinery. Energyconservation techniques in the use of agriculturalmachinery have been given emphasis in thetraining programmes being conducted at theDepartments Farm Machinery Training andTesting Institutes. For improving the level ofmechanisation in the North-Eastern States, a new

    scheme has been included in the programmes forthe Ninth Five Year Plan of the Department.Besides, with a view to bringing about aneffective and balanced development of farmmechanisation in the various agro-climatic zonesof the country, another new scheme has beenproposed for its implementation during the NinthFive Year Plan for conducting an in-depth studyto identify the specialised agricultural equipmentsuitable for catering to the felt-needs of thedifferent zones and formulating long-termmechanisation strategies of each agro-climaticzone.

    Progress of Selective Mechanisation

    11.2 The ever-increasing use of improvedagricultural machines and implements hascontributed to a noteworthy increase in theproduction of the agricultural produce by way oftapping the optimal agricultural potential of thecountry. Keeping in view the indispensability ofanimal power in the prevailing agro-climatic andsocio-economic condition of the country, theGovernment have also laid emphasis on thepromotion and popularisation of improved handtools, animal drawn implements and some of thepower operated machines among the farmers.During the year under report, it was targeted toprovide subsidy ranging from 25 percent to 50percent to the farmers for the purchase of about2,28,000 manually operated/bullock drawnimplements and power operated machines, 94700plant protection equipment, 17,400 sprinkler sets,and 3970 power tillers under the various crop-oriented schemes of the Department. As a resultof the Government policy and programmes, fuel-efficient tractors and other improved and qualityfarm machines and equipment are now availableto the farmers. The programmes have alsoresulted in the increased adoption of agriculturalmachines by the farmers. The farm power, nowavailable in the country is estimated at 1.1 Hp/ha.against about 0.35 Hp/ha. in the early seventies.The production and sale of tractors and powertillers during the last five years are given in thefollowing table.

  • Department of Agriculture and Cooperation Annual Report 1997-1998

    Production and Sale of Tractors and Power TillersYear Tractors Power Tillers

    Production(Nos.)

    Sale(Nos.)

    Production(Nos.)

    Sale(Nos)

    1993-94 1,36,971 1,38,879 9034 9449

    1994-95 1,64,029 1,64,841 8334 8376

    1995-96 1,91,311 1,91,329 10500 10045

    1996-97 2,11,689 2,20,937 11210 11000

    1997-98 2,57,449 2,51,198 13450 13100

    Promotion of Agricultural Mechanisation

    11.3 This Centrally Sponsored Scheme had beenimplemented as a pilot Scheme during the year1992-93 and was continued during the EighthFive Year Plan Period. Under this scheme,subsidy @30 percent, limited to Rs. 30,000/-, isavailable to the farmers, their groups, RegisteredCooperative Societies, Agricultural CreditSocieties, Multipurpose Agricultural FarmingSocieties, for the purchase of tractors upto 30PTO H.P. along with matching implements. Thisscheme provides preference for grant of subsidyto the marginal, small and semi-medium farmersin that order and farmers belonging to SC/ST andother weaker sections of the society for thepurchase of tractors. Against the BE (1997-98) ofRs. 1600,00 thousand for the Scheme, fundsamounting to Rs. 16,69,30 thousand werereleased to the State/UTs during the year underReport for subsidising 5564 tractors.

    Training

    11.4 The Central Farm Machinery Training andTesting Institute, Budni (M.P.) and the NorthernRegion Farm Machinery Training and TestingInstitute. Hisar (Haryana) continued impartingtraining during the year under report with theannual target of training 1150 personnel each.Targets of training 700 and 250 personnel hadbeen fixed for the Southern Region FarmMachinery Training and Testing Institute,Garladinne (Andhra Pradesh) and the North-Eastern Region Farm Machinery Training andTesting Institute, Biswanath Chariali (Assam)respectively for the year 1997-98. Against theoverall target of training 3250 personnel duringthe year 1997-98, all these Institutes trained 3367personnel.

    Testing

    11.5 The Institute at Budni (M.P.) is the maintesting station for conducting performance testson tractors, combine harvesters, power tillers, etc.The Institute is the only authority accredited inIndia for the official testing of agriculturaltractors as per the Organisation for EconomicCooperation and Development (OECD) test code,tractors. The creation of Roll Over ProtectiveStructures (ROPS) testing facilities foragricultural tractors at the Institute was activelypursued. The creation of ROPS testing facilitiesat the Institute would improve safety aspects ofindigenous tractors; thereby increase theiracceptability in the international market. Being adesignated authority for testing and issuance ofthe certificate to agricultural tractors and powertillers for their conformity to Central MotorVehicle (Amended) Rules, 1993, nine certificateswere issued by the Institute during 1997-98 inrespect of agricultural tractors. The other twoInstitutes at Hisar (Haryana) and Garladinne(A.P.) undertake performance tests on farmimplements and self-propelled machines upto 10H.P. capacity. Against the total target of testing65 machines during 1997-98, these four Institutestested and released reports on 60 machines. Ashortfall of about 8 percent was there inachieving the testing targets during the year asthe testing of agricultural machinery is notmandatory.

    Development of Prototypes of IndustrialDesigns of Agricultural Implements

    11.6 The scheme aims at bridging the gapsbetween functional designs and the productiondesigns of the identified agricultural implementsand machines. The scheme envisages to developindustrial designs of functionally provenimproved agricultural implements through theestablished R&D organisations in the Public andPrivate Sectors having adequate industrialengineering facilities and good performancerecord. Funds for the development of industrialdesigns are provided by the Department ofAgriculture and Corporation to the identifiedinstitutions to meet the developmental charges forthe industrial design and including the cost ofsample prototypes, industrial design document,important jigs and fixtures needed. No funds areprovided for recruitment/strengthening of staff,buildings, etc. During Eighth Five Year Planperiod, the industrial prototype ofGroundnut/Castor Decorticator

  • Department of Agriculture and Cooperation Annual Report 1997-1998

    (Manually operated) was developed. Besides, theprototyes of Jyoti Seed Cum Fertiliser Drill(Bullock drawn) and Multicrop Power Thresherwere at different stages of development. Theoutlay for the Ninth Five Year Plan is Rs. 20000thousand. The State Governments and theirinstitutes have been persuaded to take advantageof the scheme for the development of the neededequipment in the agricultural sector.

    State Agro Industries Corporations

    11.7 The Government of India had advised theState Governments in the year 1964 to set upState Agro Industries Corporations (SAICs) inthe public sector to act as catalyst in providingaccess to farmers of the industrial inputs for usein agriculture. Thus, 17 SAICs were set up in thejoint sector with equity participation ofGovernment of India and the respective StateGovernments namely: Andhra Pradesh, Assam.Bihar, Gujarat, Haryana, Himachal Pradesh,Jammu & Kashmir, Karnataka. Kerala, MadhyaPradesh, Maharashtra, Orissa, Punjab, Rajasthan,Uttar Pradesh, Tamil Nadu and West Bengalduring 1965 to 1970. Many of the StateGovernments have increased their equityparticipation. As a result, Government of India atpresent is a minority share-holder. SAICs havesince expanded their basic functions bycommencing manufacture and marketing ofagricultural inputs.

    Implements, machines, after sale-service,promotion and development of agro-basedunits/industries. During 1996-97, the combinedprovisional turnover of 17 SAICs was Rs.18,13,70,00 thousand as compared to Rs.15,67,99,00 thousand during 1995-96. Only threeSAICs were earning profits and other SAICswere making losses.

    11.8 These Corporations have been advised toconcentrate their efforts on the introduction ofimproved/innovative technology for Indianagriculture which is important for tapping theoptimum agricultural potential in the country andimproving their profitability by professionalisingthe management and rationalising the manpower.

    DAC-ICAR Interface

    11.9 DAC-ICAR Interface meetings between theofficers of Machinery Division and officers ofAgricultural Engineering Division, ICAR, havebeen held from time to time for interaction andfor speedy development in the field ofAgricultural implements/machinery and alliedmatters. In pursuance of the recommendations ofthe interface, collection and compilation of aDirectory of Agricultural MachineryManufacturers indicating their addresses and therange of the products being manufactured bythem has been taken up. The Directory is likely tobe brought out during 1998-99.

  • Department of Agriculture and Cooperation Annual Report 1997-1998

    AGRICULTURAL EXTENSION

    Introduction

    Agricultural Extension is aimed at promotingagricultural development by providing thefarmers with information and training oncontinuous basis regarding improved productiontechnologies and their adoption. The Directorateof Extension acts as a nodal agency at thenational level for co-ordinating and operatingextension programmes. Major policy guidelineson extension matters are laid down by theDepartment of Agriculture and Cooperationwhereas specific programmes and activities inturn are implemented by the Directorate ofExtension in collaboration with StateDepartments of Agriculture and StateAgricultural Universities.

    12.2 The extension services in 17 major Stateshave been strengthened through NationalAgricultural Extension Projects (NAEPs),. Thesmaller States/UTs. have also been supportedsuitably to streamline the training andinformation system for extension functionariesand farmers. The emphasis has been laid on abroad-based extension strategy with thrust onholistic extension delivery.

    12.3 The programmes and activities arespecifically planned and implemented in thefollowing three specific sectors:

    (a) Extension Management;

    (b) Extension Training; and

    (c) Farm Information.

    Extension ManagementDAC-ICAR Interface

    12.4 To have a strong interaction between Departmentof Agriculture and Cooperation (DAC) and Indian

    Council of Agricultural Research (ICAR) and todevelop strategies, joint interfaces are organised onpre-rabi and pre-kharif basis. Senior scientists/officersfrom both Departments participate and deliberate onthe issues on critical thrust areas and points for bothdevelopment and research are reviewed for furtherfollow-up. The extension issues identified in pre-rabi.interface held on 29-30th June, 1997 includedjoint efforts for strengthening research-extensionlinkages at various levels, joint training strategies,addressing gender issues and augmenting information.Such interfaces are also proposed to be held atregional level in Arunachal Pradesh (North-East) andKerala (South) during 1998-99

    Agricultural Extension through VoluntaryOrganisations

    12.5 With a view to increasing the coverage, theefficiency of extension services, the efforts madeby Non-Governmental Organisations (NGOs) areintegrated with main extension through a CentralSector Scheme. Initially, this scheme is beingimplemented on pilot basis by involving 14NGOs from eight States. The progress of thescheme was reviewed in a National Workshopheld on 11-12th November. 97 at Narendrapur,West Bengal. The scope of the scheme isproposed to be expanded during 1998-99.

    Farmers-Scientists Interaction Programme

    12.6 To introduce an institutionalised system ofproviding direct feed-back from farmers to thescientists on problems and constraints inagriculture and communicating relevanttechnological advances to the farmingcommunity, a scheme entitled Farmers-ScientistsInteraction on Agro-Climatic Zone basis isimplemented on pilot basis since 1992-93.Thisregular system of Farmers-Scientists Interactionprovides a forum for on-the-spot identification offield problems and suggestions for remedialmeasures thereto. These interaction sessions areorganised both for Kharif and Rabi seasons atNational Agricultural Research Project (NARP)centres. All the 17 major States are covered bythis programme and proposal for covering North-Eastern States and UTs is under consideration.

    National Agricultural Technology Project(NATP)

    12.7 National Agricultural Technology Project(NATP) is in formulation stage. The ICAR is thenodal

  • Department of Agriculture and Cooperation Annual Report 1997-1998

    agency whereas the technology dissemination.component is being monitored by Department ofAgriculture and Cooperation. The componentenvisages the following key reforms:

    - Re-structuring public extension services tobecome more farmers responsive with thrust onholistic broad-based approach based on locationspecific requirements;

    - Creation of an environment for greaterparticipation of Non-Governmental Sector,Farmers Organisations, Corporate Organisa-tions, Women Groups, etc;

    - Increasing use of information technologies inthe Transfer of Technology; and

    - Moving towards a regime of financialsustainability of extension services throughaffecting in a phased manner, a more realisticcost recovery of agri-services and inputs.

    12.8 Integrated extension delivery is being pilottested at district level by establishing a registeredsociety. The project would be piloted in six Statesnamely, Andhra Pradesh, Bihar, Punjab,Himachal Pradesh, Maharashtra and Orissa. Theproject has already been negotiated with theWorld Bank in January, 1998 and is likely to beimplemented from 1998-99.

    Broadbasing of Agricultural Extension

    12.9 The concept of Broadbased AgriculturalExtension as introduced in early Nineties, to havean idea integrated farming system approach. Theguidelines in this regard were prepared andcirculated to all the States. Under this approach,extension advice has been widened covering allland-based activities such as horticulture, soil andwater conservation, social forestry, animal-husbandry, agriculture, sericulture, bee-keeping,etc. The State Governments were facilitated toprepare a detailed plan for operationaliastion ofthis concept by organising two-day State levelworkshop inviting State level heads of agricultureand other line Departments. Seven suchworkshops were organised during 1996-97 and1997-98.

    National Seminars/Workshops

    12. 10 National Seminars/Workshops areorganised every year to discuss policies andprogrammes related to agricultural extension. Themain objective of these seminars is to reviewimplementation status, design extension strategyand exchange experience at the national andregional levels. During 1997-98, ten suchWorkshops/Seminars have already beenorganised.

    12.11 The computerisation of extensioninformation is also being augmented byupgrading the existing facility, training ofstaff/officers and developing connectivity withother related agencies through NationalInformatic Centre (NIC).

    Extension Training Support

    12.12 Multi-tier infrastructure has been created atNational, Regional, State, Divisional and Districtlevels for training of senior level extensionmanagers, Subject Matter Specialists, middle andgrass root level extension functionaries as well asfarmers, farm youth and farm women. TheNational Institute of Management of AgriculturalExtension (MANAGE) has been established atHyderabad to cater to the training needs inextension management. Four ExtensionEducation Institutes (EEIs) have been establishedon regional basis to provide training incommunication technology and extensionmethodology. 15 Advanced Training Centres(ATCs) have been established at ICAR/StateAgricultural Universities (SAUs) and otherCentral Institutes as centres of excellence forproviding training in subject matter areas. Statelevel training institutions are also in operation in7 states for training the field extensionfunctionaries. State Agricultural Universities,Krishi Vigyan Kendras and Farmers TrainingCentres also provide training to the grass-rootlevel extension functionaries, farmers and farmwomen.

  • Department of Agriculture and Cooperation Annual Report 1997-1998

    National Institute for Agricultural ExtensionManagement

    12.13 National Institute of Agricultural ExtensionManagement (MANAGE) has been established atHyderabad as national level institution to imparttraining to senior/middle level extensionfunctionaries in the areas of agriculture extensionmanagement including planning andimplementing agricultural extension projects,resource management and monitoring andevaluation of extension programmes. It has alsodeveloped systematic linkages between State,National and International Institutions ofoutstanding accomplishment in the field ofagricultural extension management. MANAGEalso arranges country-wide field visits forextension personnel from under developed anddeveloping countries to study Indian agriculturextension system. It is also conducting researchstudies in the field of Agriculture extension.During the year 1997-98, a total number of 72training programmes organised and 2129 seniorand middle level extension managers engaged inpolicy planning and implementation trained. Thetraining programme includes processconsultancies, sponsored programmes,management development programmeworkshops, International training programmes,Post Graduate Diploma in business managementand agricultural extension management. TheMANAGE is also acting as a technical arm of theMinistry of Agriculture in operationalising andconducting pre-project exercise relating toforthcoming National Agricultural TechnologyProject (NATP).

    Training in Subject Matter Areas

    12.14 National Training Courses in subject matterareas of Agriculture, Horticulture, AnimalHusbandry and allied sectors are organisedthrough State Agricultural Universities, ICARInstitutes and other National Institutes to improveprofessional competence of Subject MatterSpecialist (SMSs) and Master Trainers workingunder State Department of Agricultural and allieddepartments. During 1997-98 53, National

    Training courses 21 off campus State levelcourses and 10 skill upgradation workshops wereorganised and 1513 participants trained.

    Training in Extension Methodology AndCommunication Techniques

    12.15 Extension Education Institutes located atNilokheri (Haryana), Anand (Gujarat),Hyderabad (Andhra Pradesh) and Jorhat (Assam)are imparting training in extension methodologyand communication techniques on regional basis.During the period from April 1997 to March,1998, 84 courses were organised and 1264participants were trained.

    Training Abroad

    12.16 Senior and middle level extensionfunctionaries and Subject Matter Specialists(SMSs) working in the agriculture extensionsystem in the States are deputed to InternationalInstitutes/developed countries for upgrading theircompetence in specific areas of interest for thecountry. A few courses are in the pipeline to betaken up during the remaining part of thefinancial year.

    Advanced Training Centres (ATCs)

    12.17 15 Advanced Training Centres to updatethe competency of the Subject Matter Specialists(SMSs), have been established at selected StateAgricultural Universities, ICAR/Central Institutescovering the subject matter areas of Wheat, Rice,Sorghum, Horticulture, Dryland Agriculture,Water Management, Plantation Crops, TemperateHorticulture, Soyabean, Oilseeds, Kharif andRabi Pulses. Financial assistance is provided tostrengthen the training infrastructure in terms ofcore staff and other items like civil works,equipments, vehicle, furniture, etc.

    12. 18 Each Advanced Training Centre isorganising 3-5 specialised workshops and 2 to 3Directorate of Extension sponsored SubjectMatter Courses for Subject Matter Specialists andMaster Trainers.

  • Department of Agriculture and Cooperation Annual Report 1997-1998

    During 1997-98, an amount of Rs 847 thousandwere released for Infrastructural development/Courses.

    Exchange of Farmers Within the Country

    12.19 The scheme is in operation since 1990-91and provides for conducting study tours offarmers from less developed areas toagriculturally developed areas in groups of 20farmers each and observe the progress made bytheir counterparts in the agriculture and alliedareas, so that they could adopt suitabletechnology on their own farms. During 1997-98,an amount of Rs 1943 thousand was released forvisit of 81 groups of farmers of 20 farmers each.

    Higher Training of Subject Matter Specialists/Agricultural Extension Officers/Village LevelWorkers

    12.20 To develop professional expertise andpromotional avenues for Subject MatterSpecialists, Agricultural Extension Officers andVillage Level Workers working under the StateDepartments of Agriculture are provided highertraining leading to B.Sc. (Ag) /M.Sc. (Ag)degrees in Agricultural Extension, Agronomy,Entomology, Plant Pathology and Horticulture.The selected officials are given stipend of Rs. 400per month per head and book grant of Rs. 750/-per head per year for Graduate Courses andstipend of Rs. 500 per month per head and bookgrant of Rs. 1000/- per head per year for PostGraduate courses. During 1997-98, Rs. 71thousand was released for 138 candidates.

    Training Manual/Handbooks

    12.21 Directorate of Extension brings out trainingmanual/handbooks on selected thrust areas ofcrops production and allied subjects for the use ofSubject Matter Specialists and other extensionfunctionaries working under State Departments toequip them with simple, illustrative and handyreference material. Training manual revised onWheat Production and Integrated PestManagement are in process of printing. Inaddition to production and revision of trainingmanuals/handbooks, useful reading material hasalso been procured from International Institutesfor distribution among State Departments ofAgriculture. During 1997-98, one manual forHybrid Rice Seed Production was procured fromIRRI for distribution to field functionaries of ricegrowing States. Efforts are being made toimprove the quality

    of training manuals by organising manualWriters Workshop during 1998-99.

    Training Support in North-Eastern Region

    12.22 A Central Sector Special Sub-Project onstrengthening Extension Training in North-Eastern Region is under implementation since1992 in the States of Arunachal Pradesh,Manipur, Meghalaya, Mizoram, Nagaland andTripura. The objective of the project is tostrengthen the training and communicationinfrastructure to support agriculture extension inthese States. The training components includeinstitutional training, off-campus trainingprogrammes, study-tours, refresher training,overseas training, etc. Besides these, assistancefor production of video films, procurement ofequipments and vehicle is also provided. During1997-98, an amount of Rs. 7700 thousands wasreleased to these states. Review meeting was heldat Imphal (Manipur) to review physical andfinancial status of this project.

    Training Support to Goa, Sikkim and UnionTerritories

    12.23 A Central Sector Special Sub-Project forthe strengthening of Agricultural Extension in thesmaller States and Union Territories is underimplementation to provide communication andtraining support to the smaller States of Goa,Sikkim and Union Territories of Andaman andNicobar, Dadra and Nagar Haveli, Daman andDiu, Lakshadweep and Pondicherry. The maincomponents of the project are training of Officersand Subject Matter Specialists, inservice trainingand study tours of village level workers, trainingof farmers and strengthening the informationsystem by equipping them with audio-visual aidsand providing mobility to extensionfunctionaries. During 1997-98, an amount of Rs.3500 thousands was released.

    Women in Agriculture

    Central Sector Scheme of Women inAgriculture

    12.24 A Central Sector Scheme of Women inAgriculture was launched in seven States duringEighth Five Year Plan with a total estimated costof Rs. 16427 thousand. The scheme envisages tomotivate and mobilise farm women to beorganised into groups so that the agriculturalsupport such as input, technology and extensionsupport could be smoothly channelised throughthe network of these groups.

  • Department of Agriculture and Cooperation Annual Report 1997-1998

    12.25 The scheme is being implemented atdistrict level through an identified district agency.210 viable Farm Women groups have beenconstituted under the scheme and 4200 farmwomen have been rigorously trained through1266 Village Based/Refresher Training Camps ofthree days duration each, through skill teachingpractical demonstrations and hand on practice.210 Link Workers Identified by Farm WomensGroup have been trained through 39 LinkWorkers Training Camps of three days durationeach. Regular Extension and Input Support wereprovided to the trained farm women through 2248result demonstrations conducted on their fields.39 study tours and 20 Mahila Goshties were alsosuccessfully organised, where farm women, linkworkers, facilitators, scientists of variousdisciplines and Line Departments exchanged theirviews and expertise among themselves. 90 ThriftViable Groups have been constituted. During1997-98, 282 Village Based Training (VBT), 9Link Workers Training (LWT), 744 ResultDemonstration (RD) and nine study tours and onerefresher training for facilitators have beenorganised besides, 526 village based trainingcamps, 12 Link Workers Trainings, 905 resultdemonstrations, eight Mahila Goshties, 12 studytours.

    Externally Aided Projects

    Women And Youth Training ExtensionProject (WYTEP)-Phase-II12.26 DANIDA Assisted Women and YouthTraining Extension Project Phase-II is beingimplemented in all the Districts of KarnatakaState except Bidar with a total cost of Rs. 173100thousand. The Project has been extended upto30th September, 1998. During 1997-98 It isanticipated that 3930 Farm Women and4050 Farm Youth Women and 4050 Farm Youthwill be trained through Institutional TrainingCamps, 1665 Farm Women through LinkWorkers Training.

    Tamil Nadu Women in Agriculture (TANWAProject)-Phase-II

    12.27 DANDIA assisted project (TANWA) isbeing implemented in all the districts of TamilNadu State except Madras with a total cost of Rs.287300 thousand in Phase-II. During 1997-98,11948 Farm Women have been trained underVillage Based Training (VBT), 107 specialtraining, 107 farm women conferences and 3046follow-up visit, have been organised.

    Training And Extension for Women inAgriculture (TEWA) Orissa,-Phase-II.

    12.28 Training and Extension for Women inAgriculture (TEWA), phase-II is beingimplemented in eight Districts of Orissa withDanish assistance with a total cost of Rs.11,84,65 thousand for a period of five years. 272Lady Village Agricultural Workers have beentrained under this project who are in turn training50,000 farm women.

    Training of Women in Agriculture, MadhyaPradesh (MAPWA)

    12.29 Training of Women in Agriculture inMadhya Pradesh is being implemented withDanish assistance with a total cost of Rs. 62400thousand in eight districts of the State. The entireState would be covered under the project in aphased manner. During 1997-98, 71 VBT, 201follow up, 3 Special Training, one refreshercourse, 46 crop demonostrations and 140extension visits were organised.

    Training of Women in Agriculture inGujarat(Phase-Il)

    12.30 Training of Women in Agriculture Projectin Gujarat covering 12 districts with a total costof Rs. 121300 thousand is being implementedwith Dutch assistance since July, 1997. During1997-98 upto December, 1997, 1004 farmwomen have been exposed to InstitutionalTraining, 192 to vocational and 2614 to pre-seasonal trainings and 11542 farm women haveparticipated in follow-up activities, 100 had undergone study tour within the State and 22 outsidethe State

    Andhra Pradesh Women in Agriculture(ANTWA)

    12.31 The Dutch assisted Project Women inAgriculture in Andhra Pradesh is beingimplemented in six districts at a total cost of Rs.570,000 thousand. During 1997-98, 90 VillageBased Training Camps, 264 Pre-seasonalTraining Camps have been organised. 269Charcha Mandals have been formulated and 1008demonstrations have been conducted on thewomen farmers fields.

    Farm Women Training in Uttar Pradesh

    12.32 Government of Uttar Pradesh hassubmitted a proposal for Farm Women Trainingin Uttar Pradesh with an estimated project cost ofRs. 150139

  • Department of Agriculture and Cooperation Annual Report 1997-1998

    thousand. Seven backward districts are proposedto be covered for a period of six years. Theproposal is under active negotiation with Dutchauthorities. It is anticipated that the letter foragreement would be signed shortly.

    Constitution of an Expert Committee onWomen in Agriculture

    12.33 At the instance of the Agriculture Ministeran Expert Committee on Women in Agriculturehas been constituted to advise the Department ofAgriculture and Cooperation on matters relatingto women in agriculture. The Committee is aStanding Mechanism built in to analyse thevarious policies and strategies of the Departmentof Agriculture and Cooperation and suggest waysto make the Agricultural Policies GenderFriendly. Committee has convened twomeetings and have submitted an interim report. Anumber of recommendations were contained inthat Report which has been examined at the levelof Secretary (A&C) and Agriculture Minister andsome of these Recommendations have beenapproved and accepted by them.

    12.34 The approved recommendations have beentranslated into a time bound Action Plan whichis being circulated to all the Divisions /Departments/ States as a guideline for developingprogramme components on those lines. Thepresent Committee comprises 17 members ofwhich seven are non-official.

    Creation of a Nodal Unit as Woman Cell

    12.35 Consequent upon the acceptance of theRecommendations of National Perspective Planfor Women (1988-2000), a Women Cell wasconstituted in the Department of Agriculture andCooperation, the orders of which were reiteratedin April, 1997. The Women Cell functions in theExtension Division and acts as a Nodal Agencyfor cooperation/Convergence/coordination ofvarious programmes of the Department. The Cellalso act as a technical unit of the ExpertCommittee on Women in Agriculture. The Cellmonitors and evaluates programmes and activitiesrelated to women in agriculture, prepares acomprehensive data-base and acts as aclearinghouse for all women related activities inagriculture.

    Farm Information Support Programmes

    12.36 The Farm Information Unit of theDirectorate of Extension gives

    support to Agricultural Extension Programmesthrough publications, organising exhibitions,fruits and vegetable shows, augmenting mediasupportboth print and mass, providingincentives to the institutions encouraging theoutstanding achievements and production ofvideo films in agriculture and allied sectors.

    Publication of Magazines

    12.37 The Directorate of Extension brings outfour hi-monthly journals namely: IntensiveAgriculture, Agriculture Extension Review, inEngish and Unnat Krishi, Krishi Vistar Samikshain Hindi. It also brings out technical ad-hocpublication in the form of leaflets, bulletins, farmfeatures on specific subjects the bulletins/ad-hocpublications brought out during 1997-98 arelisted below:

    - Proceedings and recommendations of 5thPreKharif DAC-ICAR interface.

    - Film Producers Directory 1997.

    - National Conference on Agriculture for KharifCampaign Agenda

    - Background Notes for Economic Editorsconference 1997.

    - Pre-Rabi Interface DAC-ICAR proceedings andrecommendations.

    - Sixteenth national workshop training, planningand management-proceedings.

    - All India Fruit Shows (Publicity material) Posters and schedules of shows.

    - Rice, Fish and Integrated Farming System forwater-logged low lands and readily transferablecrop production technology, know your seedthrough seed testing laboratory, identification andManagement Strategies, insect pest of rapeseedand mustard. Avoid cases of pesticide poisoning,

    - Posters and Special issues for World Food Day(English and Hindi).

    - Agriculture Ministers speech for 17th WorldFood Day.

    Production of Agricultural Films

    12.38 The Directorate of Extension has broughtout about 58 video films during 1997-98. Thesefilms are produced on the identified thrust areasby the Ministry of Agriculture covering variousaspects of agricultural extension such as training,gender

  • Department of Agriculture and Cooperation Annual Report 1997-1998

    issues, co-operative success stories, NGOscheme, etc. two films viz. Film of crops,oilseeds and pulses and horticulture and anotherfilm of animal husbandry and fisheries have beeninitiated for achievements during last fivedecades. Few films are in the pipeline onachievement of Indian Agriculture on 50thAnniversary of Independence. Besides this, eightStates have been requested to bring out videofilm on achievement in Agriculture in theirrespective States.

    Participation in Fairs/Exhibitions

    12.39 Besides India International Trade Fair(IITF) 97, the Directorate of Extension hasparticipated in International Exhibition at Muscat,Oman and also exhibitions held at Nagpur,Durgapur and Calcutta during the year underreport.

    Fruits and Vegetable Shows

    12.40 During the year of report, the Directorateof Extension has organised All India MangoShow at Lucknow, in June, 97, All India GuavaShow at Allahabad in December, 97, All IndiaCitrus show at Shillong in Jan, 98 and All IndiaBer show at Jodhpur in Feb, 98.

    Productivity Awards

    12.41 14 National Productivity Awards would begiven through National Productivity Council inagriculture and allied sectors to the agro-basedorganisations In recognition of their outstandingperformance, during 1997-98.

    Media Workshops

    12.42 Due to 12th Parliamentary Election,

    Directorate of Extension could not organise anymedia support workshop.

    Celebration of 50th Anniversary of IndianIndependence

    12.43 As a part of this celebration, Hon'ble UnionMinister of Agriculture, had dedicated theAgriculture Pavilion at Pragati Maidan to theNation on 5 November, 97. Besides, theDirectorate of Extension participated in MobileExhibition on Rail. A special issue on IntensiveAgriculture was also brought out highlightingachievements during five decades of IndianAgriculture; Indian Agriculture sinceindependence; Agricultural Research; Educationpast, present and the future, Livestockachievements and goals; Horticulture research inIndia; Blue revolution; 50 years of achievementsin oilseed sector; Safe substitute of AZO; thesuccess story of Mahagrapes; Sustainableagricultural practices then and now.

    Media Support

    12.44 A TV News Krishi Samachar has beenstarted on Doordarshan (DD-I). The efforts aremade to design the software in such a way thatthe farmers get on line, real time information onweather, market prices, major events inagriculture and allied sector, etc.

    Agrinews

    12.45 A first news letter of Department ofAgriculture and Cooperation, Ministry ofAgriculture have been brought out for the use ofState departments, State Agriculture Universitiesand others.

  • Department of Agriculture and Cooperation Annual Report 1997-1998

    AGRICULTURAL CREDITexists network of 92327 Primary AgriculturalCredit Societies (PACs), 364 District Central.Cooperative Banks (DCCBs) with 28 StateCooperative Banks (SCBs) In the short termCooperative Credit Structure. In the long termcooperative structure, there were 20 State LandDevelopment Banks (SLDBs) with 1792 Primaryunits as on 31-3-95 catering to the requirement ofinvestment credit

    Agricultural Credit Policy

    The emphasis on Agricultural Credit continued tobe progressive institutionalisation for providingtimely and adequate credit to farmers forincreasing agricultural production andproductivity. Providing better access toinstitutional credit for small and marginal farmersand other weaker sections to enable them to adoptmodern technology and improved agriculturalpractices has been one of the major objectives ofthe countrys Agricultural Policy.

    Institutional Arrangements for AgriculturalCredit

    13.2 Agricultural credit is disbursed through amulti-agency network consisting of CommercialBanks (CBs), Regional Rural Banks (RRBs) andCooperatives. As on 31-3-1996, there were 36020rural and semi-urban branches of commercialbanks, 14497 branches of the 196 Regional RuralBanks (RRBs). In the cooperative sector, there

    Flow of Credit

    13.3 The total loans disbursed by the Agencies ofFinancial Institutions for agriculture sector havebeen increasing over the years. The quantum ofagricultural credit disbursed during 1992-93 wasof the order of Rs. 151690000 thousand,Rs. 164940000 thousand in 1993-94, Rs.18744,00,00 thousand in 1994-95, Rs.220320000 thousand in 1995-96 and Rs.28653,00,00 thousand in 1996-97. The projectionfor disbursement of agricultural loans during1997-98 is of the order of Rs. 34274,00,00thousand. Agency-wise disbursement ofagricultural credit during the eighth Plan periodfor 1992-93 to 1996-97 and projections for 1997-98 are given In the table below:

    Present Policy Directions

    13.4 In order to sustain agricultural growth, thecredit system is proposed to be restructured so asto double. the flow of Credit to Agriculture andAgro-industries particularly to small andmarginal farmers within five years. In order toprovide benefits to poor Sections of the farmingcommunity and neglected regions of the country,various policy initiatives have been taken by theGovernment of India.

    Measures Taken13.5 In order to strengthen the rural credit systemso as to double the flow of credit to agriculture,the

  • Department of Agriculture and Cooperation Annual Report 1997-1998

    Disbursement of Agricultural Credit(Rs. in thousand)

    Type 1992-93 1993-94 1994-95 1995-96 1996-97(AnticipatedAchievement)

    1997-98(Projection)

    CooperativesI) Short termii) Term Loan

    7170000022080000

    7839000022780000

    7250000021560000

    8331000021480000

    9750000027290000

    11500000032750000

    Sub-total 93780000 101170000 94060000 104790000 124790000 147750000Commercial Banks/RRBsI) Short termii) Term loan

    2921000028700000

    3432000029450000

    --93380000*

    6194000053590000

    7941000082330000

    93770000101220000

    Sub-total :Grand Total :

    57910000151690000

    63770000164940000

    93380000164940000

    115530000220320000

    161740000286530000

    194990000342740000

    * Including Short Term Lending Source : NABARDs Publication

    State Governments have been advised toconstitute a Standing Committee to assess therequirements of agricultural credit for the Rabiand Kharif seasons and to review theperformance thereof.

    13.6 One of the constraints in agriculturalcredit has been the problem of mountingoverdues. To overcome this problem, DACconvene a series of Governments wereimpressed upon to take various measures forimproving the recovery performance ofcooperative credit institutions so that therecycling of funds could take place.

    13.7 This Department has also initiated manysteps including re-formulation of a draftlegislation to the Multi-State CooperativeSocieties Act, in order to restore the autonomyof the cooperative credit institutions.

    13.8 Amendments to the National CooperativeDevelopment Corporation (NCDC) Act, 1962have been brought out with a view to giving theNCDC greater operational freedom, free accessto resources and opening up to the scope of itsactivities to the livestock and poultry sectorsamong many others.13.9 Further, for maintaining increased creditflow at the ground level and ensuring adequatecoverage of neglected backward regionsincluding North-Eastern Regions. NABARDhas been requested to relax its norms relating tominimum recovery norms for sanction of creditlimits to banks to facilitate the flow of credit tonew and non-defaulting members/borrowersand norms in the discipline of MinimumInvolvement.

  • Department of Agriculture and Cooperation Annual Report 1997-1998

    13.10 A Study Group was set up in theDepartment to conduct a Pilot Study of theproblems being faced by the Rural CreditStructure and in particular the Cooperate CreditStructure in the Stales and to suggest measuresto rejuvenate and revitatlise the cooperativestructure.. The Group undertook Pilot Studiesin the States of Karnataka, Orissa and Bihar.Recommendations of the Group are underexamination.Central Financial Assistance13. 11 In order to strengthen the cooperativecredit institutions for meeting the creditrequirement of the farmers. central financialassistance is released to the State Governmentsunder various Schemes. During 1997-98, thefollowing assistance were released to the StaleGovernments.Central Financial Assistance(Rs. in Thousand)S.No.

    Name of the Scheme Assistancereleased

    1. Investment in Debentures ofState Land Development Banks.

    1300000

    2. Comprehensive Crop InsuranceScheme

    1100000

    3. Special Scheme for SCs/STs. 81.004. Non Over due Cover 600005. Agricultural Credit Stabilisation

    Fund40000

    Farmers till 31 .3.98 against the premiumincome of Rs. 2,68,90,55 thousand. Progress ofthe implementation of scheme during theEighth Five Year Plans is given in Appendix.

    Experimental Crop Insurance Scheme13. 14 As a first step towards coverage of non-loanee farmers under the Crop InsuranceScheme, the Government has decided toimplement an Experimental Crop InsuranceScheme (ECIS) covering all small andmarginal farmers (both loanee and non-loaneeand farmers) in 24 selected districts of eightStates for one year from Rabi 1997-98. List ofselected districts/States is shown in Appendix II.

    13. 15 The scheme will cover all loanee as wellas non-loanee small and marginal farmers(including the loanee farmers covered by theCCIS) growing cereals including millets,pulses and oilseeds crops in the selecteddistricts. 100% insurance charges payable bythe small and marginal farmers will be borneby the Central and State Governmentsconcerned. The financial liability on account ofthis subsidy as also the claims d)f small andmarginal farmers would be shared between theCentral and State governments in the ratio of8:2. The scheme will be operated as far aspossible in low unit area preferably a GramPanchayat subject to the ability of the apparatusof the State Government in respect of conductof crop cutting experiments and furnishing ofyield data for the previous those of the CCIS.List of Districts/States Selected for CoverageUnder Experimental Crop InsuranceScheme (ECIS).S.No.

    State District(s)

    1. AndhraPradesh

    Prakasam Mehboobnagar

    2. Assam N. Lakhimpur Nagapon,Dhemaji, Nalbari

    3. Bihar Sitamari, Darbhanga,Madhubanik, Samastipur,Khagria, Palamau, Vaishali

    4. MadhyaPradesh

    Bastar, Sarguja

    5. Maharashtra Amravati

    6. Orissa Bolangir, Kalachandi,Naupada, Kendrapada, Jaipur

    7. Tamil Nadu Nagapattnam, Trivarur A.T.Panneerselvan

    13.12 The Central Financial Assistance underthese schemes is released to the StateGovernments on the basis of proposalsreceived from them. In case of Investment inDebentures of State Land Development BanksScheme, the assistance is released inconsultation with National Bank forAgriculture and Rural Development(NABARD).

    Comprehensive Crop Insurance Scheme

    13.13 The existing Comprehensive CropInsurance Scheme (CCIS) was continued and15 States and two Union Territoriesimplemented the scheme during 1996-97. Sinceinception of the scheme in 1985. about 58.2million farmers have been covered over an areaof about 99 million hectares insuring a sum ofRs. 1,65,240,023 thousand, claims amountingto Rs. 14,544,881 thousand have been paid tothe

    8. Karnataka Bijapur

  • Department of Agriculture and Cooperation Annual Report 1997-1998

    Appendix

    PROGRESS OF THE IMPLEMENTATION OF COMPREHENSIVE CROP INSURANCESCHEME DURING THE EIGHTH FIVE YEAR PLAN

    (Rs. in thousand)

    Year FarmersCovered

    AreaCovered(hectares)

    SumInsured

    Total Ins.Charges

    TotalClaims

    ClaimsPaid

    Claimspayable

    1992-93 50,18,843 84,26,788 14206305 229168 509550 509550 -

    1993-94 50,47,155 80,77,334 15872198 255461 1886056 1885248 808

    1994-95 51,87,198 82,44,785 18768686 297090 580231 579340 891

    1995-96 56,57,739 90,73,964 21638355 343303 1489144 1473061 16083

    1996-97 56,37,306 91,82,629 24020978 380582 1624801 971051 653750

    Total 2,65,48,241 4,30,05,500 94506522 1505604 6089782 5418250 671532

  • Department of Agriculture and Cooperation Annual Report 1997-1998

    COOPERATION

    Overview

    The Cooperatives have been playing an importantrole In the various sectors of the Indian economy.They are an Integral part of our agricultural andrural economy. The Cooperatives are engaged inseveral economic activities such as disbursementof credit, distribution of agricultural inputs likeseeds, fertilizers, agro-chemicals, storage,processing and marketing. Cooperatives enablefarmers to get good quality inputs at a lower priceas well as get remunerative prices for their farmproduce when marketed through cooperatives.The cooperative agro-processing units add valueto their precious farm produce such as milk,sugarcane, cotton, fruits & vegetables and thusfacilitate them earning better returns.

    14.2 Cooperatives in India have emerged as oneof the largest in the world with 4.48 lakh societiesof various types with a membership of 2,75,900thousand and working capital of Ps. 1,57,47,71,400 thousand as on 31.3. 1996. Almost 100percent villages are covered under thecooperative fold and about 67% of the ruralhouse hold are the members of the cooperativeinstitutions.

    Achievements14.3 By the end of March 1997, financialassistance to the tune of Ps. 3,01,59,800 thousandwas released for the development of CooperativeMarketing Structure in the country, out of this, anamount of Rs. 7,55,800 thousand went tocooperatively under least developed states.During the year 1996-97, a sum of Rs. 18,830thousand was given for this activity of which Rs.11,000 thousand went to cooperatively..

    under/least developed States. During the currentfinancial year i.e. 1997-98, a sum of Ps 10,06,500thousand has been released upto 3 1.3.98 againstrevised estimate of Rs. 11.85,500 thousand. Ofthis release, the major amount went to agro-processing (Sugar Rs 6,20,000 thousand);Cooperative marketing and processing andstorage (Ps. 2,20,000 thousand) Women andWeaker section cooperatives (Rs. 27,800thousand).

    Marketing of Agricultural Produce

    14.4 In order to provide remunerative prices ofthe farm produce as well as to safeguard theinterest of the farmers by preventing distress saleduring and immediately after the harvest season.Government of India launched three schemesvizPrices Support Scheme (PPS), MarketIntervention Scheme (MIS) and MarketIntervention Scheme for Eggs. The NationalAgricultural Cooperative Marketing Federationof India Ltd. (NAFED) is the nodal agency forthe implementation of these schemes.

    14.5 NAFED has also been making commercialpurchases of agricultural commodities such asoilseeds, pulses, spices, horticultural producedepending upon the market environment anddemand in its own account, loss/profit is met byNAFED. The objectives of these operations are:

    (i) To stabilise the market rates so that thefarmers producing those commodities may notsuffer.

    (ii) To provide food stuff and other essentialcommodities to the consumers at reasonableprices.

    (iii) To make available adequate quantities of theagricultural/horticultural commodities in themarket and arrest the tendency of hoardings.

    14.6 During the period 1996-97, NAFEDpurchased agricultural and horticulturalcommodities valued at Rs. 25728.57 lakh andduring 1997-98 at Rs. 20212 lakh. During theyear 1996 and 1997, MIS was implemented in theStates of UP (Malta and Potatoes). HimachalPradesh (Apple, Kinoo, Malta, Oranges &Galgal). Andhra Pradesh

  • Department of Agriculture and Cooperation Annual Report 1997-1998

    (Red chillies and Eggs), Karnataka (Potato,Onion and Eggs), Mizoram (Ginger), Tamil Nadu(Eggs), Haryana (Eggs), Punjab (Eggs),Rajasthan (Eggs), Madhya Pradesh (Eggs), andMaharashtra (Eggs). The details are given in theAppendix.

    14.7 NAFED has been exporting agriculturalproduce and commodities to give benefit ofhigher prices prevailing in the internationalmarkets to the farmers. To achieve this objective,NAFED has undertaken export ofagricultural/horticultural produce andcommodities in the following categories:(i) Own Export: Onion, Potato, Grapes, Apple,Spices, Galgals, Cotton, Pulses, and processedfood.(ii) Canalised Export : Onion, Nigerseed(iii) Export on Government account: Foodgrainsand Pulses(iv) Promotional Export: Lichi, Mango, Kinnow,Strawberry and Vegetables.

    14.8 During the year 1996-97, NAFED hadexported agricultural and horticulturalcommodities valued Rs. 3856163 thousand andduring the 1997-98 at Rs. 3339160 thousand.

    14.9 NAFED was the canalising agency forimport of cloves, cassia upto 22.101997. It hadalso imported pulses, maize, dal and fertilisers inSic past on commercial basis to meet thedomestic requirements.

    Cooperative Education and Training

    14. 10 The Government of India is implementinga Central Sector Scheme of CooperativeEducation and Training through the NationalCooperative Union of India (NCUI) and theNational Council for Cooperative Training(NCCT). While the education component aims atbringing about improvement in the work andmanagement of Cooperative Societies throughincreased member participation, improvedbusiness efficiency, leadership development andcooperative awareness among the masses, thetraining component aims at providingprofessional management to the cooperatives.The programmes relating to cooperativeeducation are being implemented by the NCUIthrough the State Cooperative Unions underdifferent schemes viz general CooperativeEducation Programme, Cooperative EducationProgramme for Youth, Women and minoritycommunities, Cooperative Education

    Programmes for the members of Industrial,handlooms, handicrafts and fisheriescooperatives. Besides, NCUI is directlyimplementing a special scheme for intensificationof Cooperative Education in cooperativelyunderdeveloped States and Union Territoriesthrough 26 Cooperative Education field Projectslocated in 15 Cooperatively underdevelopedStates/Union Territories. During the year 1997-98, 13.14 lakh persons were educated undervarious schemes.

    14.11 The Government of India through theDepartment of Agriculture and Cooperation isproviding 100% financial assistance in the formof Grants-in-aid to NCUI for implementing thespecial scheme of intensification of CooperativeEducation in cooperatively underdevelopedStates/U .Ts. and 20% of the total expenditure onapproved activities.

    14.12 The Cooperative Training Programmes areconducted through the National Council forCooperative Training (NCCT). The NCCToperates through the Vaikunth Mehta NationalInstitutes of Cooperative Management(VAMNICOM), Pune to cater to the trainingrequirements of senior level persons, fiveRegional Institutes of Cooperative Management(RICMS) and 14 Institutes of CooperativeManagement (ICMs) located in various parts ofthe country for meeting the training requirementsof middle level persons in CooperativeDepartments and Organisations. It also providesacademic support and guidance to 93 juniorcooperative training centres functioning under thecontrol of State Governments to train junior levelpersons of the States. During the year 1997-98,the VAMNICOM, Pune and RICMs/ICMstrained 2105 senior level persons and 19801intermediate level persons respectively. 21foreign scholars availed of the training facilitiesoffered by the NCCT at its various training unitsduring the year 1996-97. The Government ofIndia through the Department of Agriculture andCooperation is providing 100 percent financialassistance in the form of Grants-in-aid to NCCTfor conducting Cooperative Training Programmesin the country.

    14.13 An amount of Rs. 93100 thousand hadbeen released by the Department of Agriculture& Cooperation during the year 1997-98 to NCUIand NCCT for implementing the Central SectorScheme of Cooperative Education and Training.

  • Department of Agriculture and Cooperation Annual Report 1997-1998

    Assistance to Weaker Section Cooperatives

    14. 14 This is a centrally sponsored scheme andis in operation since 1988-89. The main objectiveof the scheme is to promote new cooperativesocieties and to develop the existing one so thateconomic benefits are passed on to the weakersections of the community. Financial assistance ismainly given for development of Labour Contractand Forest Labour Cooperatives toreorganise/revitalise and strengthen cooperativeslike vendor cooperatives and multi professionalcooperatives consisting of barbers, washerman,cobblers, blacksmiths, hawkers and ruralworkers. During the Eighth Five Year Plan, asum of Rs. 74,400 thousand was provided to 846weaker section cooperatives. During 1997-98.140 weaker section cooperatives were assistedand a sum of Rs. 14.000 thousand was released.

    Assistance to Women Cooperatives

    14. 15 This is Central Sector Scheme forproviding financial assistance to WomenCooperatives and was introduced during 1993-94(Eighth Five Year Plan). The main objective ofthe scheme is to bring about improvement insocio-economic status of women by providingspecial protection to them in the form of assuredwork through agro based cooperative activities.During the Eighth Five Year Plan, sums of Rs.6,08,00 thousand have been raised to 653 womancooperatives. During 1997-98, Rs. 1,40,00thousand was released to 140 WomenCooperative Societies.

    Scheme Implemented Through NationalCooperative Development Cooperation(NCDC)

    14. 16 NCDC is involved in planning promoting,coordinating and financing of cooperativedevelopment programme at the national level. Itassigns due impartance to its promotional anddevelopment role to strengthen and develop theagriculture and allied sectors in the countrythrough the cooperatives, States and CentralGovernment, it keeps liaison and acts in closecoordination with related organisations and helpscooperatives and the states in formulatingsuitable proposals and providing technicalguidance.

    Assistance to National Federation of LabourCooperatives Ltd for Weaker Sections

    14.17 Under the scheme "Assistance to National

    Federation of Labour Cooperatives for weakersections. Rs. 2000 thousand were released in1997-98 in the form of grant to NFLC for takingup skill development activities and for setting upproject monitoring unit.

    National Advisory Council on LabourCooperatives

    14. 18 NACLC was reconstituted for a period oftwo years w.e.f. 19.12.97 with Union AgricultureMinister as chairman and Union Minister of Statefor Agriculture as vice-chairman to look into thevarious issues of Labour Cooperatives.

    14.19 The Corporation makes special allocationevery year for promotional and developmentalprogrammes in addition to allocation undervarious schemes. During the period tinder report,Rs. 14,800 thousand was utilised for promotionalactivities, the total assistance provided for suchprogrammes went upto Rs. 76,9600 thousand bythe end of March, 1997.

    14.20 NCDC provided total financial assistanceof Rs. 30,15,900 thousand for cooperativemarketing activities till the end of March 1997.Of this, Rs. 75,5800 thousand were provided tocooperatively under/least-developed states.During 1996-97, an assistance of Rs. 18,8300thousand were released to cooperativelydeveloped states and Rs. 11,0000 thousand tocooperatively under/least developed States for thesaid activity. Thus a sum of Rs. 29,8300 thousandwas released during the year under review.

    14.21 The cooperatives continued to play animportant role in marketing operation of freshfruits & vegetables during 1996-97. The value offruits and vegetables marketed by them duringthe year is estimated at Rs. 160,0600 thousand asagainst Rs. 158,1000 thousand during 1995-96. Intune with Government of India's policy, NCDC isaccording high priority to the development ofhorticulture in the cooperative sector of thecountry. Assistance is also extended incollaboration with the Horticulture Board for postharvest management of horticultural crops bycooperatives.

    14.22 During the year underreport, theCorporation sanctioned 36 new societies/projectsinvolving financial assistance of Rs. 5100thousand besides additional assistance of Rs.1300 thousand to two societies. 35societies/projects are located in underdevelopedand NorthEast States. These projects are

  • Department of Agriculture and Cooperation Annual Report 1997-1998

    likely to generate higher income for the growersby efficient marketing and containing postharvest losses.

    14.23 Keeping in view the national priorities,many State Governments are also accordingPriority for marketing of horticultural produce ina professional manner. Three State viz UttarPradesh. Karnataka and Tamil Nadu have alreadyorganised separate horticulture federations.Besides a few States viz. Uttar Pradesh, TamilNadu, Gujarat and Karnataka have takeninitiative and led to organise wholesale and retailmarketing of fruits and vegetables on the modelof HOPCOMS. Bangalore. An assistance of Rs.1100 thousand was released by the NCDC forestablishment or two horticultural produceprocessing units during the year 1996-97.

    14.24 The storage capacity assisted by theCorporation and owned by the cooperatives hasincreased from 11 lakh tonnes in 1962-63 to 1.36crore tonnes by the end of March 31, 1997. Ofthis, 72,723 lakh tonnes capacity has been createdunder Internationally Aided Programmes.

    14.25 A fresh programme for construction/upgradation of 290 rural and 97 marketinggodowns of 0 1.00 lakh tonnes capacity wasapproved and Rs.11,0400 thousand wassanctioned. Besides, Rs.8,9400 thousand werereleased during the year 1996-97, raising the totalrelease of assistance to Rs.580,4600 thousand bythe end of March 1997.

    14.26 The total number of cold storages in thecountry is 3253 with a capacity of about 87.34lakh tonnes. Of this, cooperative cold storagesorganised upto March 1997 were 244 with 7,266lakh tonnes capacity. Almost the entire coldstorage capacity in the cooperative sector hasbeen created with NCDC's assistance. 89% of thecapacity is being utilised for storage of potatoesand the remaining for other fruits and vegetables,dairy and meat product. NCDC has releasedfinancial assistance of Rs. 84,5700 thousand forestablishment of cold storages in the cooperativesector till the end of March 1997. Against 244cold storages organised in the cooperative sectoras on 31.3.1997, 236 with a capacity of 6.76 lakhtonnes were installed. During the year underReport, NCDC sanctioned an assistance of Rs.5,2000 thousand and released Rs. 4,60000thousand.

    14.27 During the sugar season 1995-96 the sugarfactories in the cooperative sector produced 96.41

    Lakh tonnes of sugar which accounts for 58.60percent of the total sugar production in thecountry. This is the highest level of sugarproduction by sugar factories in the cooperativesector.

    14.28 During the year 1996-97, NCDC hassanctioned terms loan assistance of Rs. 78,9400crore and released an amount of Rs. 36.25 croreto the cooperative sugar factories under differentschemes. Cumulatively, as on 31.3.1997. Thecorporation had sanctioned and released anassistance of Rs. 8532100 thousand and Rs.759,9700 thousand respectively for thedevelopment of sugar industry in the country.

    14.29 In addition, Soft loan assistance of Rs.295400 thousand was sanctioned to threecooperative sugar factories and Rs. 74300thousand was released to two cooperative sugarmills by Sugar Development Fund (SDF),Department of Food, Government of India formodernisation-cum-expansion programmesassisted by NCDC in 1996-97. Cumulatively, ason 31.3.1997, under this scheme soft loanassistance of Rs. 163,0400 thousand wassanctioned and a sum of Rs. 1373100 thousandreleased by SDF to 32 cooperative sugar mills fortheir modernisation-cum-expansion programmes.

    14.30 The NCDCs assistance under both theschemes i.e., Centrally Sponsored/Central Sector(Growers and Handloom/Powerloom weavers)has been enlarged in 1996-97 to provide termloan to existing cooperative spinning mills inaddition to share capital assistance beingprovided earlier.

    14.31 With NCDC assistance, the cooperativeshave been able to augment the spindleage to alarge extent. As on 31.3.1997, the installedcapacity of 135 cooperative spinning mills was32.75 lakh spindles with 11840 rotors accountingfor 12% of the total installed spindleage in thecountry.

    14.32 During the year 1996-97, the Corporationsanctioned assistance of Rs. 80500 thousand formodernisation of one existing GrowersCooperative Spinning Mill in Karnataka and Rs.3800 thousand for cost escalation and marginmoney of one unit of Handloom Weavers Coop.Spinning Mill in West Bengal and also marginmoney assistance of Rs. 39800 thousand infavour of two cotton installations in the states ofGujarat and Punjab. Of the total financialsanctions of Rs. 407,5700 thousand, Rs.395,9200 thousand were released till March,1997.

  • Department of Agriculture and Cooperation Annual Report 1997-1998

    14.33 In the field of oilseed processing. NCDChas pioneered establishment of modern andsophisticated soyabean units, silo storagefacilities, vanaspati and refinery units, oil palmand its processing in the cooperative sector whichhas helped in enhancing the edible oil productionin the country. 3.30 lakh tonnes of soyabeanprocessing capacity has been created withcorporations assistance in the States of M.P.Rajasthan and UP. which account for about 7.5%of the countrys estimated soyabean productionduring 1995-96. Similarly, cooperatives havebeen playing a prominent role in exports of soya-meal, thus, earning valuable foreign exchange forthe country. During 1996-97, NCDC approved amargin money assistance of Rs. 10,000 thousandto the Government of Rajasthan and released Rs.10,38 thousand to the Government of AndhraPradesh for establishment of an oil mill.Cumulatively, Cooperation sanctionedRs. 5 19,3430 thousand for oilseed processingprogramme upto the end of March. 1997. Of the142 oilseed processing units assisted, 135 unitswere installed as on 31.3. 1997.

    14.34 During the year under review, thecorporation released a financial assistance of Rs.5,4900 thousand towards establishment of aparticle board project with a capacity of 60Cu.M/day in Maharashtra. The project aims atsubstitution of wood and wood based products byparticle board which in turn would help inreduction of deforestation and help maintainecological balance in line with the avowed policyof the Government of India. Cumulatively as on31.3. 1997, financial assistance of Rs. 52,6600thousand was sanctioned and Rs. 30,1930thousand were released by the Corporation for theaforesaid programme.

    Distribution of Agricultural Inputs ThroughCooperatives

    14.35 The Fertiliser units in cooperative sectorhave performed well in the production of N&P inthe country. Two fertiliser production giants viz.IFFCO and KRIBHCO in the cooperative sectorproduced 20.79 lakh tonnes of fertiliser(nutrients) accounting for 18.64% of totalproduction of N&P in the country during 1995-96and achieved capacity utilisation of 118% and123% for nitrogenous and phosphatia plantsrespectively. Cooperatives distributed 41.17 lakhtonnes (nutrients) fertilisers (1994-95) accountingfor 30.35% of total distribution.

    14.36 Under this scheme, all types of societiesengaged in retail distribution of fertiliser andother agricultural inputs and non-credit activitiesare covered for margin money assistancedepending upon their requirement. The mainobjective Farmers Service Centre for undertakingsupply of a wide range of agricultural inputs andalso meet the non-credit needs of farmers.

    14.37 As on 31.3.1997, a total of Rs. 24,2300thousand margin money assistance wassanctioned by the NCDC in favour of 5679Farmers Service Coop. Societies of which 1669societies are located in cooperatively under/leastdeveloped states. Of this, an amount of Rs.2,70000 thousand has been sanctioned in favourof 288 societies during 1996-97. Rs. 19,3300thousand were released till 1996-97.

    14.38 The NCDC has so far sanctioned 307 agrocustom hiring centres including three mobileworkshops with a total assistance of Rs. 7,850thousand upto the end of March, 1997 which 245agro service centres are located in the four North-Eastern States of Assam, Manipur, Nagaland andTripura. During 1996-97, NCDC sanctioned atotal Financial assistance of Rs. 62,00 thousandfor establishment of four cooperative agro customhiring centres in Tripura and Tamil Nadu andreleased Rs. 3,00 lakh to two cooperatives.

    14.39 Under the scheme, during 1996-97, theNCDC has sanctioned loan assistance of Rs.30,00 thousand to State Government of Keralafor providing margin money assistance toRegional Agro Industrial Development Coop.Ltd. (RAIDCO) for its business operations i.e.procurement, stocking and distribution ofagricultural inputs (other than fertiliser). Thecorporation during the year has released a sum ofRs. 50,600 thousand. Total of Rs. 109,0000thousand for 50 inputs manufacturing units wassanctioned and Rs. 89,05000 thousand werereleased by the end of March 1997.

    14.40 States categorised as under/least developedare provided assistance by the NCDCcomparatively on liberal terms. Cooperatives inthe North-Eastern States including Sikkim beingcooperatively least developed are providedfinancial assistance upto 95% of the project cost.During 1996-97, the NCDC disbursed anassistance of Rs. 45,7600 thousand for variouscooperative development programmes in

  • Department of Agriculture and Cooperation Annual Report 1997-1998

    the cooperatively under/least developedStates/UTs in the country under its variousschemes. Cumulatively, by the end of March,1997, Rs. 8 15,9000 thousand were released tothese states which constitute 21% of the totalfunds disbursed by the corporation to all theStates/UTs in the country.

    14.41 One significant feature of NCDCs fundingover the last one and half decades has beenimplementing projects with assistance frominternational funding agencies such asIDA/World Bank and EEC in the fields ofcooperative marketing, storage and processing.Cooperative programmes with an outlay of Rs.3,9100 thousand have been taken up by thecooperation for implementation. During 1996-97,the corporations releases for InternationallyAided Project were Rs. 2900 thousand.

    14.42 The EEC-assisted Development ofCooperative Rural Growth Centre Project inBihar which was closed on 31.3. 1996 has beenextended upto June 30, 2000 as a result of theefforts of the Government. With this extension,the State would be able to establish 50 more ruralgrowth centres.

    14.43 The NCDC has always been emphasisingthe need for developing primary cooperatives asmultipurpose bodies to provide a package ofservices to the rural community. It is with thismotive, that the NCDC is implementing a schemeof Integrated Cooperative Development Projectsin selected districts, accordingly Kullu andChamba in Himachal Pradesh were sanctionedduring 1996-97. The above projects weresanctioned at a total project cost of Rs. 1,12,600thousand i.e, Rs. 8,4800 as loan and Rs. 2,7800thousand as subsidy. Cumulatively, 64 projectshave been sanctioned involving NCDCs share ofassistance to the extent of Rs. 370,800 thousandi.e. Rs. 324,80000 thousand as loan and Rs.4,60,000 thousand as subsidy till the end ofMarch 1997 of the 61 sanctioned projects, 22have been completed.

    Development of Multi-State CooperativeSocieties

    14.44 Multi-State Cooperative Societies Act,1984 was enacted for governance and regulatingthe functioning of cooperative societies, servingthe interest of members in more than one state. Atpresent, there are 252 Multi-state Cooperativesocieties including 20 National LevelCooperative Federations such as NCUI, NAFED,etc., operating in the country. In order tostrengthen the office of the Central Registrar ofCooperative Societies, a sum of Rs. 33.25thousand was spent during the 8th Five Year Planand budget provision of Rs. 2000 thousand hasbeen made for the year 1998-99.

    Strengthening of National Level Federations

    14.45 The progressive expansion anddiversification of cooperative movement has ledto organisation of National level cooperativeinstitutions in different fields of economicactivities to accelerate the pace of cooperativedevelopment in various directions and also tostrengthen the cooperatives in their economicactivities in a coordinated manner. National LevelCooperative Federations have been playing asignificant leadership role. These federations,mostly, are promotional in nature excepting fewwhich are involved in commercial activities.Government of India has been providing bothpolicy guidance and financial support to thesefederations. The objectives of scheme is to assistthe national level federations to undertake in anextensive manner, promotional and researchactivity, improvement in infrastructural facilitiesand also to assist in building up their equity base.

    14.46 According to the pattern of assistance, pre-determining grants-in-aid is provided to thefollowing federations:

    (1) National Federation of FishermenCooperatives (FISHCOFED). New Delhi

    (2) National Federation of Labour Cooperatives(NFLC), New Delhi

  • Department of Agriculture and Cooperation Annual Report 1997-1998

    (3) National Federation of Urban CooperativeBank & Credit Societies (NAFCUB), New Delhi

    (4) All India Federation of Cooperative SpinningMills (AIFCOSPIN), Mumbai

    (5) The National Federation of Slate CooperativeBanks (NAFSCOB)

    (6) The National Federation of State CooperativeAgricultural and Rural Development Bank (NCA& RDBF), Mumbai.

    14.47 During the Eighth Five Year Plan, a sum ofRs. 4,14800 thousand was provided to thesefederations and a provision of Rs. 1,0000thousand has been made during the currentfinancial year.

    Revitalisation of Cooperatives

    14.48 With phenomenal expansion ofcooperatives in almost all the sectors, signs ofstructural weaknesses and regional imbalanceshave also become apparent. The reason for suchweaknesses could be attributed to the largepercentage of dormant membership, havingdependence on Government assistance, poordeposit mobilisation from members, lack ofprofessional management, mounting overdues,etc. concrete steps have now been initiated torevitalise the cooperatives to make them vibrant

    democratic organisations with economic viabilityand active participation of members.

    14.49 Another step being taken for revitalisationof cooperatives is the finalisation of a Bill toreplace the existing Multi-Slate CooperativeSocieties Act. 1994. It is purposed to introducethis Bill in the ensuing Session of Parliament.The thrust of the proposed legislation is toprovide functional autonomy to cooperativesocieties to operate and manage their affairsaccording to their objects and by-laws. It is alsoenvisaged to reduce the Government control overthe cooperatives. Although, only the societiesregistered under the MSCS Act would comeunder the preview of the Act. It is envisaged thatthe States would take similar action to amendtheir Cooperative Societies Acts.

    Cooperative Policy

    14.50 National Policy on cooperatives is beingfinalised to define the role of cooperatives in thenational economy and the approach of theGovernment towards the cooperatives byrecognising them as self-reliant, autonomousentities owned and controlled by membersworking on cooperative principles. The proposedPolicy also envisages a role for the Governmentin assisting and promoting cooperatives,particularly for the welfare of weaker sections ofthe community and less-developed regions of thecountry.

  • Department of Agriculture and Cooperation Annual Report 1997-1998

    Appendix

    COMMODITIES HANDLED BY NAFED UNDER MARKET INTERVENTION SCHEME (MIS)

    S.No. Commodity State Period of MIS Target QtyProposed

    QtyActuallyProcured

    1. Malta U.P. 28.1.97 to 15.2.97 3000 Mts 179 Mts2. Kinoo/Malta/Orange H.P. 28.1.97 to 15.3.97 1200 Mts 18 Mts3. Galgal H.P. -do- 900 Mts 28 Mts4. *Red Chillies A.P. 05.3.97 to 15.5.97 16500 Mts 16500 Mts5. Eggs AP,TN,MP,

    Raj,Punjab,Mah-arashtra, Karnataka

    6.3.97 to 31.3.97Nos.

    5 Crore inA.P.only

    59.32 lakhs

    6. *Potato U.P. 25.3.97 to 30.4.97 50000 Mts 578 Mts7. Apples H.P. 15.8.96 to 31.10.96 60000 Mts 19174 Mts8. *Ginger Mizoram 22.4.97 to 20.6.97 10000 Mts 10000 Mts9. *Apples H.P. 22.8.97 to 15.1.97 250000 Mts 20940 Mts10. *Potato Karnataka 18.9.97 to 30.12.97 40000 Mts 15092 Mts11. *Onion Karnataka 6.10.97 to 5.11.97 20000 Mts NIL12. Kinoo/Malta/Orange H.P. 8.12.97 to 28.2.98 1200 Mts 71 Mts13. Galgal H.P. -do- 1200 Mts 240 Mts* During January December 1997

  • Department of Agriculture and Cooperation Annual Report 1997-1998

    PRICE POLICY

    The main objectives of the Governments PricePolicy for agricultural produce continue to aim atensuring remunerative prices to the growers fortheir produce with a view to encouraging higherinvestment and adoption of modern farmtechnology for achieving higher levels ofproduction as also to safeguard the interests ofconsumers by making available supplies atreasonable prices. The thrust of price policy is ondeveloping a balanced and integrated structure inthe perspective of the overall needs of theeconomy with due regard to the interests ofproducers as well as consumers. Towards thisend, the Government announces each seasonMinimum Support Prices (MSP) for majoragricultural commodities and organises purchaseoperations through public and cooperativeagencies such as the Food Corporation of India,Jute Corporation of India, Cotton Corporation ofIndia. National Agricultural CooperativeMarketing Federation (NAFED) and TobaccoBoard, besides other agencies designated by theState Governments.

    15.2 The Government decides on the supportprice for various agricultural commodities takinginto account the recommendations of theCommission for Agricultural Costs and Prices(CACP) the views of State Governments andCentral Ministries as well as such other relevantfactors which, in the opinion

    of the Government, are important for fixation ofsupport prices.

    15.3 A notable feature of the price policy forKharif crops of 1997-98 season is theGovernment's decision to reclassify differentvarieties of paddy into two, viz. Common andGrade A variety instead of three categories(common, fine and superfine) hitherto for MSPpurposes. The Government has fixed the MSP forCommon and Grade A variety of paddy at Rs.415 and Rs. 445 per quintal respectively for the1997-98 season which marks an increase of Rs.35 per quintal and Rs. 30-50 per quintal (forsuperfine and fine variety of paddy) respectivelyover last year. As compared to last season, theMSPs have been raised by Rs. 50 in case ofcoarse cereals (jowar, bajra and ragi) andsoyabean (black and yellow), Rs. 40 in case ofmaize and sunflower seed. Rs. 60 in ease ofKharif pulses, groundnut-in-shell and jute and Rs.150 in case of cotton. Rs. 1.50 per kg has raisedthe minimum support prices of tobacco.Similarly, R. 80 per quintal has raised by Rs. 200and of sesamum and nigerseed the minimumsupport price for Copra (milling and ball).Similarly, minimum support prices for Rabi cropshave been hiked. The MSP of wheat has beenraised by Rs. 40 per quintal, barley by Rs. 45,gram by Rs.

  • Department of Agriculture and Cooperation Annual Report 1997-1998

    75, rapeseed/mustard by Rs. 50 and safflower byRs. 80 per quintal.

    15.4 The minimum support prices of majoragricultural commodities fixed in the last fewyears are given in the Appendix.

    15.5 The minimum support prices fixed by theGovernment are in the nature of a guarantee thatin the event of a glut in the market consequentupon excessive production or any other reasons,the prices will not be allowed to fall below theminimum economic levels. The farmers are freeto sell their

    produce in the open market at prices which maybe higher than the support prices fixed by theGovernment.

    15.6 The price policy followed by theGovernment over the years has paid richdividends and has not only made the country self-sufficient in foodgrains but also have generatedexportable surplus in respect of certain otheragricultural produce. The price policy hassucceeded in providing adequate raw material tothe industry. This policy of the Government hasalso improved the Terms of Trade for theagriculture sector in the recent years.

  • Department of Agriculture and Cooperation Annual Report 1997-1998

    PROCUREMENT / MINIMUM SUPPORT PRICES(According to Crop Year)

    (Rs. per quintal)Sl. Commodity Variety 1990-

    9191-92 92-93 93-94 94-95 95-96 96-97 97-98 Absol

    uteIncrease in97-98over96-97

    Percentage

    1 2 3 4 5 6 7 8 9 10 11 121. Paddy Commo

    n FineSuperFineGradeA

    205215225

    230240250-

    270280290-

    310330350-

    340360380-

    360375395-

    380395415

    415--445#

    35---

    9.2---

    2. CoarseCereals(Jowar Bajra& Ragi)

    180 205 240 260 280 300 310 360 50 16.1

    3. Maize 180 210 245 265 290 310 320 360 40 12.54. Wheat 225 275$ 330$ 350 360 380 475* 510** 35 7.45. Barley 200 210 260 275 285 295 305 350 45 14.86. Gram 450 500 600 640 670 700 740 815 75 10.17. Arhar 480 545 640 700 760 800 840 900 60 7.18. Moong 480 545 640 700 760 800 840 900 60 7.19. Urad 480 545 640 700 760 800 840 900 60 7.110 Sugarcane @ 23.00 26.00 31.00 34.50 39.10 42.50 45.90 48.45 2.55 5.611. Cotton F-414/

    H-777620 695 800 900 1000 1150 1180 1330 150 12.7

    H-4 750 840 950 1050 1200 1350 1380 1530 150 10.912. Groundnut-

    inshell580 645 750 800 860 900 920 980 60 6.5

    13. Jute TD 5Grade

    320 375 400 450 470 490 510 570 60 11.8

    14. Rapeseed/Mustard

    600 670 760 810 830 860 890 940 50 5.6

    15. SunflowerSeed

    600 670 800 850 900 950 960 1000 40 4.2

    16. Soyabean Black 350 395 475 525 570 600 620 670 50 8.1Yellow 400 445 525 580 650 680 700 750 50 7.1

    17. Sofflower 575 640 720 760 780 800 830 910 80 9.618. Toria 570 645 725 780 800 825 855 905 50 5.819. Tobacco

    (VFC)BlackSoil(F2Grade)

    13.25 14.75 16.00 18.00 18.50 19.00 19.00 20.50 1.50 7.9

    (Rs. per kg.) LightSoil(L2Grade)

    14.25 16.00 17.50 20.00 21.00 21.50 22.00 23.50 1.50 6.8

    20. Copra Milling 1600 1700 N.A. 2150 2350 2500 2500 2700 200 8.0(Calender Yr) ball - 1850 N.A. 2350 2575 2725 2725 2925 200 7.3

    21. Seasamum - - - - - 850 870 950 80 9.222. Nigerseed - - - - - 700 720 800 80 11.1

    @ - Statutory minimum price for a basic recovery of 8.5% with proportionate premium for every 0.1% increase in recovery.$ - Including a Central Bonus of Rs. 25.00 per quintalN.A. - Not Announced.# - Paddy will be classified into two Categories for the MSP purposes instead of existing three Varieties for the ensuing Kharif season of

    1997-98.* - Inlcuding a Central Bonus of Rs. 60.00 per quintal payale on the Wheat offered for sale to the procurement agencies for Central Pool

    upto 30th June, 1997.** - Including a Central Bonus of Rs. 55.00 per quintal payable on wheat offered for sale to the procurement agencies for Central Pool for

    period form 1.4.1998 to 10.6.98

  • Department of Agriculture and Cooperation Annual Report 1997-1998

    AGRICULTURAL TRADE

    The agricultural sector with the significantshare in GDP, plays a significant role in theemployment generation especially in the ruralsector. In the aftermath of agreement onagriculture under the aegis of W.T.O., it hassignificant potential as a net foreign exchangeearner.

    16.2 The main approach of the GovernmentPolicy has been to control trade in a manner toensure adequate availability of essential fooditems to consumers at reasonable prices and toprotect farmers from foreign competition. Theobjectives of export and import policy given asunder:

    (i) Exports To maximise agricultural exports inorder to ensure remunerative prices to thefarmers and boost foreign exchange earnings,keeping in view the prime consideration ofsufficient availability of essential commodities(particularly of mass consumption) to thedomestic consumers at reasonable prices. Exportof Principal Agricultural commodities furnishedat Appendix-I.

    (ii) Imports To regulate imports, keeping inview the domestic demand and supply situation,indigenous production, export potential andconsideration of foreign exchange.

    16.3 Specific policy in respect of principalagricultural commodities as contained in EXIMPolicy 1997-2002 is given below:

    i) Rice : Export is allowed freely withoutany restrictions now.

    ii) Coarsegrains: Exports is allowed upto aquantitative ceiling of 50,000 Mts during 1997-98.

    iii) Wheat and Wheat Products: Export ofwheat banned now, but export of wheatproducts, whether in bulk or in consumer packs,be allowed within an overall quantitative ceilingof 0.5 million tonnes.

    (iv) Pulses : Export is permitted against alicence subject to a quantitative ceiling but,export in consumer packs be freely allowed.

    v) Hybrid Jowar : The export of HybridJowar (grown as Kharif crop) is freely allowed.

    vi) Oilseeds: (a) The exports of HPSGroundnut and Sesame seeds are freely allowedfor the year 1997-98. (b) The export of Castorseeds is allowed freely

    vii) Qilmeals : Export is free without anyrestrictions.

    viii) Tobacco: Export is free without anyrestrictions for both (a) Unmanufactured and (b)Manufactured.

    ix) Spices: Export is free without anyrestrictions.

    x) Cashew: Export is free without anyrestrictions.

    xi) Horticultural and Floricultural ProductsExport is free without any restrictions now.

    xii) Fresh Vegetables : Export is free withoutany restrictions.

    Export Performance

    16.4 Increased export of agriculturalcommodities has been witnessed over the years.In the last five years, the value of agriculturalexports has increased from Ps. 78,84,29,00thousand in th~.year 1992-93 to Rs.2,10,20,99,00 thousand in the year 1996-97. The

  • Department of Agriculture and Cooperation Annual Report 1997-1998

    commodities like wheat, rice, groundnut,ofimeals and raw cotton (including waste) wheresignificant increase of exports (in quantity) hastaken place during the last five years are given inAppendix I

    16.5 Yearwise data on volume and value ofexports and imports of agricultural commoditiesare given in Appendix II and III. A statementshowing the exports of agricultural commoditiesduring the current year (April - Dec. 1997) ascompared to the corresponding period of last yearis given in Appendix-IV. A similar statement onimports is given in Appendix-V.

    Removal of Quantitative Restrictions onImports

    16.6 Quantitative restrictions on imports aremaintained under Article-XVIII-B of GATTAgreement. This is a GATT consistentmeasurement for countries having balance ofpayment difficulties. However, this has beenchallenged in the Dispute Settlement Body ofWorld Trade Organisation

    (W.T.O.). India is currently in the process offinalising our phase-out s'chedule over six yearson residual agricultural items currently underQuantitative restriction.

    16.7 The phase-out programme is being doneon the basis of sensitivity of the particular cropfrom the point of view of (I) its implications onthe principal vocation of majority of our farmpopulation and (ii) its importance as a staple itemof food.

    Programme for 1998-99

    16.8 The liberalisation of Import Export Policyin respect of Agricultural Commodities is beingpursued in liaison with the Ministry ofCommerce. The liberalisation of trade is acontinuous process, the primary objective is tohelp maximise agricultural exports and foreignexchange earnings and also ensure remunerativeprices to the farmers keeping in view thedomestic requirements of the commodities ofmass consumption.

  • Department of Agriculture and Cooperation Annual Report 1997-1998

    Appendix-I

    EXPORT OF PRINCIPAL AGRICULTURAL COMMODITIES DURING LAST FIVE YEARSFORM 1992-93 TO 1996-97

    Value in Rs. thousand

    YearsPrincipal AgriculturalCommodities 1992-93 1993-94 1994-95 1995-96 1996-97

    Marine products 1743,00,00 2552,00,00 3537,00,00 3381,00,00 3981,00,00

    Oll meals 1545,00,00 2324,00,00 1798,00,00 3449,00,00 3486,00,00

    Rice 976,00,00 1287,00,00 1106,00,00 4568,00,00 3151,00,00

    Cashew(incl. CNSL) 749,00,00 1048,00,00 1247,00,00 1237,00,00 1283,00,00

    Cotton raw incl.Waste

    182,00,00 654,00,00 140,00,00 204,00,00 1607,00,00

    Spices 393,00,00 569,00,00 612,00,00 794,00,00 1196,00,00

    Sugar & Mollases 354,00,00 178,00,00 62,00,00 506,00,00 1050,00,00

  • Appendix IISTATEMENT SHOWING EXPORT OF AGRICULTURAL PRODUCTS

    Qty. : 000 tonnesValue : Rs. in thousand

    1992-93 1993-94 1994-95 1995-96 1996-97Sl.No.

    ItemQty. Value Qty. Value Qty. Value Qty. Value Qty. Value

    1. Pulses 34.31 53,44,00 43.60 73,59,00 50..51 90,41,00 61.36 131,81,00 53.56 128,13,002. Rice Basmati 324.79 800,64,00 527.23 1061,26,00 442.23 865,32,00 373.31 850,67,00 488.74 1197,75,003. Rice

    (Other than Basmati) 255.62 174,96,00 567.19 225,46,00 448.50 340,47,00 4540.70 3717,41,00 1984.92 1952,83,004. Wheat 36.75 10,21,00 0.39 0,21,00 86.63 42,34,00 632.47 366,76,00 1094.19 679,97,005. Other Cereals 17.06 10,16,00 148.32 34,02,00 84.24 28,03,00 28.10 16,97,00 64.77 48,84,006. Tobacco Unmanfg 70.61 355,57,00 90.49 368,26,00 42.91 184,13,00 77.66 378,69,00 77.09 445,98,007. Tobacco Mfg. 17.65 118,47,00 14.18 92,95,00 10.82 70,62,00 9.43 68,13,00 9.85 91,83,008. Poultry & Dairy

    Products48,88,00 58,76,00 118,80,00

    9. Floriculture Products 14,91,00 18,84,00 30,84,00 60,14,00 61,80,0010. Spices 128.71 393,42,00 182.33 568,91,00 154.95 612,24,00 203.73 793,52,00 366.19 1196,22,0011. Cashew (include.

    CNSL)62.66 748,66,00 78.47 1048,20,00 80.25 1247,09,00 70.83 1237,16,00 70.11 1283,03,00

    12. Sesame & Niger Seed 67.70 116,22,00 39.05 73,51,00 59.57 141,73,00 84.14 257,26,00 100.91 276,69,0013. Ground Nut 4.34 7,72,00 254.21 170,63,00 51.12 101,32,00 118.91 230,69,00 143.45 313,35,0014. Oil Meals 3678.84 1545,29,00 4837.28 2323,92,00 4150.85 1797,84,00 4300.82 2348,61,00 4459.69 3486,29,0015. Castor Oil 68.23 117,39,00 138.91 289,30,00 184.64 441,28,00 291.82 742,52,00 219.08 624,02,0016. Shellac 5.01 41,07,00 5.97 65,47,00 4.58 46,86,00 5.70 62,73,00 4.71 47,51,0017. Sugar & Mollasses 485.10 353,51,00 204.53 178,08,00 51.08 62,16,00 863.72 506,40,00 1539.67 1049,91,0018. Fruits/Vegetables

    Seeds3.54 22,98,00 6.72 41,14,00 3.25 41,29,00

    19. Fresh Fruits 312,42 414,34,00 188,75,00 230,19,00 249,34,0020. Fresh Vegetables 247,98,00 297,41,00 342,36,0021. Processed Vegetables 79,14,00 142,75,00 106,35,0022. Process Fruit Juices 119,76,00 155,60,00 169,44,00 204,56,00 224,58,0023. Misc. Processed Items 108,44,00 128,42,00 112,60,00 540,45,00 771,08,0024. Meat & Preparations 257,11,00 344,52,00 402,73,00 627,00,00 694,34,0025. Marine products 210.49 1743,15,00 257.98 2551,89,00